MARKETING STRATEGY OF -Hdfc Mutual Fund
-
Upload
suryakantshrotriya -
Category
Documents
-
view
652 -
download
43
Transcript of MARKETING STRATEGY OF -Hdfc Mutual Fund
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
1/114
PREFACE
Experience is the best teacher. This saying is very well applicable in everyoneslife. Therefore as a student of management it must apply to me also. Then thequestion arises that from where we can get this experience. Obviously we mustundergo practical Training. To serve this purpose I had undergone two monthssummer training at HDFC assets Management Company limited and as an outcome Ihave prepared this project report.
This project report on mutual fund awareness in retail investors of HDFC assets
Management Company in Surat is as per syllabus prescribed by Veer Narmad southGujarat University for MBA students. This project also deals with various activities ofHDFC assets Management Company limited. The experience of this training will beuseful in my future and findings of this particular project will be Helpful to takedecision regarding to marketing and advertising of mutual fund schemes To HDFCassets Management Company limited.
1
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
2/114
Objectives of Study
Without any aim or objective, no activity can exist, in the same direction of
preparation of this report on HDFC assets Management Company limited. In different
functional areas & research on the mutual fund awareness in retail investors of
HDFC assets Management Company limited in Surat is based on the followingobjectives: -
1. My primary objective is to acquire primary functions of management like
Planning, Organizing, Directing and controlling from various functional areas
such as Finance, Human Resource, Marketing, and Sales etc.
2. Whatever we are taught in the classrooms, there is a limitation that book can
only give theoretical concept or knowledge and it has a limited view of
practically. So, the other important objective of this training is to know about
practical aspect and to know how a company actually works in practical
situation.
3. To know the mutual fund awareness level of the retail investors who are invest
in HDFC assets Management Company limited.
2
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
3/114
Limitations of Study
There is no activity without any limitations.
1. Though every one used to be very co-operative but every detail was unable to
be disclosed to me as the officials has to maintain secrets of the company.
2. It is difficult to cover all the function of the company.
3. The analysis and conclusion made by me as per my limited understanding and
there may be something variation in the actual situation.
4. Because of the limited time period, the survey work was conducted in the
Surat region and the sample size was taken as 100 respondents only.
5. In this rapidly changing turbulent era the suggestions and recommendations
drawn out today might prove inadequate or improper tomorrow; this is likely
to limit its effectiveness.
3
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
4/114
EXECUTIVE
SUMMARY
4
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
5/114
Executive Summary
The entire report is an unforgettable journey of support, knowledge, experience,
dedication, perfection, and patience. For me it is all about to understand a customer
and market of mutual fund industry.
The report is specially oriented to particular area, though it is representing the strong
base of Investment management-which covers different investment avenues, their
handling contribution, strategy, portfolios, and related risk factors. Mutual funds- how
they are formed, history, scenario, types, trends, myths, distribution, advantages, and
even disadvantages of them.
Tips to effectively sell the mutual funds, to be effective agent, some dos and donts
about mutual funds while investing. Company details and its progress and its
interpretation base for analysis, conclusion, findings, and questionnaire, which helped
a lot in consumer, survey analysis. Asset allocation, accounting, taxation, valuation
and necessary information for generating base for conclusion. And at last but not the
least the collected data from city and their interpretation.
In short all efforts which was made to make this report explains
WORK IS WORSHIP
5
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
6/114
CONTENTS
Sr. No. Name of Table Page No.
1 Objectives of Study 5
2 Limitations of study 6
3 Executive summary 8
4 Company details 11
About the Company 12
Sponsors of HDFC Assets ManagementCompany
13
Management of HDFC Assets ManagementCompany
14
Offices of HDFC assets management companylimited
17
5 Product details 24
6 Future scenario 32
7 Industry details 33
Introduction 34
History of Mutual Fund Industry 36
Customers Profile of mutual fund industry 40
Positioning Strategy of mutual fund industry41
Promotional Tools Employed by various mutualfund companies
42
Facts About Mutual Fund 45
8 Mutual fund 46
Introduction to Mutual Fund 47
Mutual Fund Cycle 49
Critical view about Mutual Fund 50
Why Investor Needs Mutual Fund 54 Mutual Fund Risk 55
6
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
7/114
9 Types of Mutual Fund 58
10 Structure of Mutual Fund 60
11 Other various assets management companies details 64
12 Regulatory Aspects 6713 Research 71
Purpose of the Research 72
Research Objective 73
14 Research Methodology 74
Research Design 75
Sources of Data 76
Sampling Plan 78
Data Collection Method 80
15 Data analysis and findings 8116 Findings 92
17 Limitations 95
18 Conclusions 97
19 Recommendations 100
20 Annexure 103
21 Glossary 105
22 List of Table 107
23 List of Graphs 108
24 Bibliography 109
7
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
8/114
COMPANY
DETAILS
8
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
9/114
About the Company: -
An HDFC asset Management Company limited is well-established fund house. HDFCAssets Management Company limited is sponsored by Housing Development FinanceCorporation Limited (HDFC) and Standard life investments limited.
HDFC assets Management Company limited launched its scheme HDFC EQUITYFUND in the year January 1995. Since then it focused on different class of schemesfor many years and launched several innovative products that went to become
bourgeoning categories in the Indian mutual fund industry.
Some of these were HDFC GROWTH FUND, HDFC TOP 200 FUND, and HDFC
BALANCED FUND, HDFC PRUDENCE FUND etc.
HDFC assets Management Company limited have offices in 29 cities and currentlymanage assets in excess of Rs 36146.67 cores. (May 2007.)
9
http://www.hdfcindia.com/http://www.hdfcindia.com/http://www.hdfcindia.com/http://www.hdfcindia.com/ -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
10/114
Sponsors of HDFC Assets Management Company:-
Housing Development Finance Corporation Limited (HDFC)
HDFC was incorporated in 1977 as the first specialized Mortgage Company in India.HDFC provides financial assistance to individuals, corporates and developers for the
purchase or construction of residential housing. It also provides property relatedservices (e.g. property identification, sales services and valuation), training andconsultancy. Of these activities, housing finance remains the dominant activity.HDFC has a client base of around 9.5 lack borrowers, around 1 million depositors,over 91,000 shareholders and 50,000 deposit agents as at March 31, 2007. HDFC hasraised funds from international agencies such as the World Bank, IFC (Washington),USAID, DEG, ADB and KfW, international syndicated loans, domestic term loansfrom banks and insurance companies, bonds and deposits. HDFC has received thehighest rating for its bonds and deposits program for the twelfth year in succession.HDFC Standard Life Insurance Company Limited, promoted by HDFC was the firstlife insurance company in the private sector to be granted a Certificate of Registration(on October 23, 2000) by the Insurance Regulatory and Development Authority totransact life insurance business in India.
Standard Life Investments Limited
The Standard Life Assurance Company was established in 1825 and has considerableexperience in global financial markets. The company was present in the Indian lifeinsurance market from 1847 to 1938 when agencies were set up in Kolkata andMumbai. The company re-entered the Indian market in 1995, when an agreement wassigned with HDFC to launch an insurance joint venture. On April 2006, the Board ofThe Standard Life Assurance Company recommended that it should demutualise andStandard Life plc float on the London Stock Exchange. At a Special General Meetingheld in May voting members overwhelmingly voted in favor of this. The Court of
Session in Scotland approved this in June and Standard Life plc floated on the LondonStock Exchange on 10 July 2006. Standard Life Investments was launched as an
10
http://www.hdfcindia.com/http://www.standardlifeinvestments.com/http://www.hdfcindia.com/http://www.standardlifeinvestments.com/ -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
11/114
investment management company in 1998. It is a wholly owned subsidiary ofStandard Life Investments (Holdings) Limited, which in turn is a wholly ownedsubsidiary of Standard Life plc. Standard Life Investments is a leading asset
management company, with approximately US$ 269 billion as at March 30, 2007, ofassets under management. The company operates in the UK, Canada, Hong Kong,China, Korea, Ireland and the USA to ensure it is able to form a truly globalinvestment view. In order to meet the different needs and risk profiles of its clients,Standard Life Investments Limited manages a diverse portfolio covering all of themajor markets world-wide, which includes a range of private and public equities,government and company bonds, property investments and various derivativeinstruments.
Management of HDFC Assets Management Company:-
HDFC Trustee Company Limited:
A company incorporated under the Companies Act, 1956 is the Trustee to the MutualFund vides the Trust deed dated June 8, 2000, as amended from time to time. HDFCTrustee Company Limited is a wholly owned subsidiary of HDFC Limited.
HDFC Asset Management Company Limited:
HDFC assets Management Company limited was incorporated under the CompaniesAct, 1956, on December 10, 1999, and were approved to act as an Asset ManagementCompany for the Mutual Fund by SEBI on July 3, 2000. The registered office of theHDFC assets Management Company limited is situated at Ramon House, 3rd Floor,H.T. Parekh Marg, 169, Backbay Reclamation, Church gate, Mumbai - 400 020. Interms of the Investment Management Agreement, the Trustee has appointed HDFCAsset Management Company Limited to manage the Mutual Fund. The paid up
capital of the HDFC assets Management Company limited is Rs.75.161 crore.
11
http://www.hdfcfund.com/aboutus/managementTrusteeShow.jsphttp://www.hdfcfund.com/aboutus/managementAMCShow.jsphttp://www.hdfcfund.com/aboutus/managementTrusteeShow.jsphttp://www.hdfcfund.com/aboutus/managementAMCShow.jsp -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
12/114
The present share holding pattern of the HDFC Assets management company is as
follows:
Particulars% of the paid up share
capital
HDFC 50.10
Standard Life InvestmentsLimited
49.90
The HDFC Assets management company is managing 18 open-ended schemes of the
Mutual Fund viz. HDFC Growth Fund (HGF), HDFC Balanced Fund (HBF), HDFC
Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Tax Plan 2000 (HTP), HDFC
Children's Gift Fund (HDFC CGF), HDFC Gilt Fund (HGILT), HDFC Short Term
Plan (HSTP), HDFC Index Fund, HDFC Floating Rate Income Fund (HFRIF), HDFC
Equity Fund (HEF), HDFC Top 200 Fund, (HT200), HDFC Capital Builder Fund
(HCBF), HDFC Tax Saver (HTS), HDFC Prudence Fund (HPF), HDFC High Interest
Fund (HHIF), HDFC Sovereign Gilt Fund (HSGF) and HDFC Cash Management
Fund (HCMF). HDFC assets Management Company limited is also managing the
respective Plans of HDFC Fixed Investment Plan, a closed ended Income Scheme.
12
http://www.hdfcfund.com/aboutus/standardLifeShow.jsphttp://www.hdfcfund.com/aboutus/standardLifeShow.jsphttp://www.hdfcfund.com/aboutus/standardLifeShow.jsphttp://www.hdfcfund.com/aboutus/standardLifeShow.jsp -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
13/114
The HDFC Assets management company has obtained registration from SEBI vide
Registration No. - PM / INP000000506 dated December 22, 2000 to act as a PortfolioManager under the SEBI (Portfolio Managers) Regulations, 1993.
The HDFC Assets management company is also providing portfolio management /
advisory services and such activities are not in conflict with the activities of the
Mutual Fund
HDFC assets Management Companys punch line is continuing a
tradition of trust.
In Gujarat HDFC assets Management Company is located at Ahmadabad,
Surat, vadodara, Rajkot.
HDFC assets Management Company is working from 9:30 a.m. onwards.
HDFC assets Management Company Have 200 and more distributors in
Surat.
HDFC assets Management Company Provide account statements to
investors according to investors requirement.
13
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
14/114
HDFC assets Management Company Provide good services to investors.
14
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
15/114
Offices of HDFC ASSETS MANAGEMENTCOMPANY LIMITED
INVESTOR SERVICE CENTRES/OFFICIAL POINTS OF ACCEPTANCE FOR HDFC MUTUAL
FUND
REGISTEREDOFFICE
HDFC Mutual Fund - Mumbai *
Ramon House, 3rd Floor,H.T Parekh Marg, 169,
Backbay Reclamation, Church gateMumbai 400020.
Andhra Pradesh
HDFC Mutual Fund - Hyderabad
6-3-883/7, 2nd Floor,Saphire Square, Somajiguda,
Hyderabad - 500282.
Email:[email protected]
HDFC Mutual Fund - Visakhapatnam
Ground Floor, Saigopal Arcade,Opp Waltair Club,
Waltair Main Road, Siripuram,Visakhapatnam - 530003.
Email:[email protected]
Bihar
HDFC Mutual Fund - PatnaRani Plaza Apartment,(Patna X-Ray Clinic),
Exhibition Road,Patna - 800001.
Email:[email protected]
New Delhi
HDFC Mutual Fund - New Delhi
4th Floor, Mohan Dev Bldg., 13,Tolstoy Marg, Connaught Place,
New Delhi - 110001.Email:[email protected]
15
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
16/114
Goa
HDFC Mutual Fund - Goa
A3, First Floor, Krishna Building,
Opp. Education Dept,Behind Susheela Building, G.P. Road,Panaji - 403001.
Email:[email protected]
Gujarat
HDFC Mutual Fund - Ahmadabad
2nd Floor, Megha House,Besides Gruh House,
Mithakhali Six Roads,Ahmedabad - 380009.
Email:[email protected]
HDFC Mutual Fund - Rajkot
2nd Floor, Shiv Darshan,Dr Radha Krishnan Road,
5, Jagnath Plot Corner,Rajkot - 360001.
Email:[email protected]
HDFC Mutual Fund - Surat
U1 - U3, Jolly Plaza,Opp Athwa Gate Police Station,
Athwa Gate,Surat - 395001.
Email:[email protected]
HDFC Mutual Fund - Vadodara
Upper Ground Floor, Gokulesh,R C Dutt Road,
Vadodara - 390007.Email:[email protected]
Jharkhand
HDFC Mutual Fund Jamshedpur
Gayatri Enclave,2nd Floor, "K Road",
Bistupur,Jamshedpur - 831001.
Email:[email protected]
Karnataka HDFC Mutual Fund Bangalore
No.114, 1st Floor, Prestige Towers,99 & 100, Residency Road,
Bangalore - 560025.
Email:[email protected]
16
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
17/114
HDFC Mutual Fund Mangalore
UG -II, 6 & 7, Upper Ground Floor,
Maximus Commercial Complex,Light House Hill Road, Opp. KMC,Mangalore - 575001.
Email:[email protected]
Kerala
HDFC Mutual Fund Kochi
Ground Floor,Cinema Cum Commercial Complex,
Behind Ravipuram Bus Stop,M.G. Road,
Kochi - 682016.
Email:[email protected]
MadhyaPradesh
HDFC Mutual Fund Bhopal
Ranjit Towers,Zone II, 8 MP Nagar,
Bhopal - 462011.Email:[email protected]
HDFC Mutual Fund Indore
M1, M2 & M3, Mezzanine Floor,Sterling Arcade,15 / 3, Race Course Road,
Indore - 452001.Email:[email protected]
Maharashtra HDFC Mutual Fund Mumbai
Mistry Bhavan, 1st Flr, 122,Backbay Reclamation,
Dinsha Vachha Road, Churchgate,Mumbai - 400020.
Email:[email protected]
HDFC Mutual Fund Nagpur
106-110, Shriram Shyam Towers,2nd Floor, Next to NIT Building,
Kingsway, Sadar,Nagpur - 440001.
Email:[email protected]
HDFC Mutual Fund Nashik
17
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
18/114
G- 1 & G-2, "Suyojit Heights",Opp. Rajiv Gandhi Bhavan,
Sharanpur Road,
Nashik - 422002.Email:[email protected]
HDFC Mutual Fund Pune
HDFC House, 2nd Floor,Shivaji Nagar, University Road,
Pune - 411005.Email:[email protected]
Orissa
HDFC Mutual Fund Bhubaneswar
2nd Floor, Vinayak 96,Janpath,Bhubaneshwar - 751001.
Email:[email protected]
Punjab
HDFC Mutual Fund Chandigarh
SCO 375-376,Ground Floor, Sector 35-B,
Chandigarh - 160022.Email:[email protected]
HDFC Mutual Fund Ludhiana
SCO 122,Feroze Gandhi Market,
Ludhiana - 141001.Email:[email protected]
Rajasthan
HDFC Mutual Fund Jaipur
Moondhra Bhavan,3 Ajmer Rd,
Jaipur - 302001.Email:[email protected]
HDFC Mutual Fund Jodhpur
Gulab Singh Building,11, Chopasani Road,Jodhpur - 342003.
Email:[email protected]
Tamil Nadu HDFC Mutual Fund Coimbatore
1371A, Ground Floor,Nadar Building Trichy Road,
Coimbatore - 641018.Email:[email protected]
18
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
19/114
HDFC Mutual Fund Chennai
ITC Centre, 1st Floor,
760 Anna Salai,Chennai - 600002.Email:[email protected]
Uttar Pradesh
HDFC Mutual Fund Kanpur
1st Floor, 16/80 D,Behind SBI Main, Civil Lines,
Kanpur - 208001.
Email:[email protected]
HDFC Mutual Fund Lucknow4 Shahnajaf Road,
Lucknow - 226001.
Email:[email protected]
West Bengal
HDFC Mutual Fund Kolkata
Menaka Estate, 1st Floor,3 Red Cross Place,Kolkata - 700001.
Email:[email protected]
19
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
20/114
(Fig no 1- office locations of HDFC Assets Management Company)
20
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
21/114
PRODUCT
DETAILS
21
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
22/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
23/114
Inception Date: - January 01, 1995
2. HDFC growth fund:-
Investment Objective: - The primary investment objective of
the Scheme is to generate long term capital appreciation from a
portfolio that is invested predominantly in equity and equityrelated instruments.
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open Ended Growth Scheme
Inception Date: -September 11, 2000
3. HDFC Top 200 fund:-
Investment Objective: - To generate long-term capitalappreciation from a portfolio of equity and equity-linkedinstruments primarily drawn from the companies in BSE 200index.
Investment Options: Dividend & Growth Option
4. HDFC mid cape opportunity fund;- Investment Objective: - To generate long-term capital
appreciation from a portfolio that is substantially constituted of
equity and equity related securities of small and Mid-Cap
companies.
Investment Options: Dividend & Growth Option
Nature of Scheme:- Open Ended Growth Scheme
Inception Date:- May 07, 2007
5. HDFC capital builder fund:-
23
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
24/114
Investment Objective: - To generate long-term capital
appreciation from a portfolio that is substantially constituted of
equity and equity related securities of small and Mid-Capcompanies.
Investment Options: Dividend & Growth Option
Nature of Scheme:- Open Ended Growth Scheme
Inception Date:- February 01, 1994
6. HDFC core and satellite fund:-
Investment Objective: - The primary objective of the
Scheme is to generate capital appreciation through equity
investment in companies whose shares are quoting at prices
below their true value.
Investment Options: Dividend & Growth Option
Nature of Scheme:- Open Ended Growth Scheme
Inception Date:- September 17, 2004
7.HDFC premier multicape fund:-
Investment Objective: - The primary objective of the Schemeis to generate capital appreciation in the long term throughequity investments by investing in a diversified portfolio ofMid Cap and Large Cap `blue chip` companies.
Investment Options: Dividend Plan, Growth Plan, The
Dividend Plan offers Dividend Payout and Reinvestment
Facility.
Nature of Scheme: - Open Ended Growth Scheme
Inception Date: - April 06, 2005
BALANCED SCHEMES OF HDFC ASSET MANAGEMENT
COMPANY:-
1. HDFC balanced fund: -
24
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
25/114
Investment Objective: - The primary objective of the
Scheme is to generate capital appreciation along with current
income from a combined portfolio of equity and equityrelated and debt and money market instruments.
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open Ended balanced fund
Inception Date: - September 11, 2000
2. HDFC prudence fund:-
Investment Objective: - The investment objective of the
Scheme is to provide periodic returns and capital
appreciation over a long period of time, from a judicious mix
of equity and debt investments, with the aim to prevent/
minimize any capital erosion
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open Ended balanced fund
Inception Date: - February 01, 1994
3. HDFC short term plan:-
Investment Objective: - The primary objective of the
HDFC Short Term Plan is to generate regular income
through investment in debt securities and money market
instruments.
Investment Options: Growth Plan, Dividend Plan. The
Dividend Plan offers Dividend Payout and Reinvestment
Facility.
Nature of Scheme:- Open Ended income fund
Inception Date: - February 28, 2002
4. HDFC multi yield fund:-
25
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
26/114
Investment Objective: - The primary objective of the
Scheme is to generate positive returns over medium time
frame with low risk of capital loss over medium time frame. Investment Options: Growth Plan, Dividend Plan. The
Dividend Plan offers Dividend Payout and Reinvestment
Facility.
Nature of Scheme: - Open Ended income fund
Inception Date: - September 17, 2004
DEBT SCHEMES OF HDFC ASSET MANAGEMENT
COMPANY :-
1. HDFC Income Fund:-
Investment Objective: - The primary objective of the Scheme
is to optimize returns while maintaining a balance of safety,
yield and liquidity.
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open Ended Income Scheme
Inception Date: - September 11, 2000
2. HDFC Income Fund: -
Investment Objective: - The investment objective of HDFC
High Interest Fund is to generate income by investing in a
range of debt and money market instruments of various
maturity dates with a view to maximizing income while
maintaining the optimum balance of yield, safety and liquidity.
Investment Options: Dividend & Growth Option
Nature of Scheme: - Open Ended Income Scheme
26
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
27/114
Inception Date: - April 28, 1997
3. HDFC MF Monthly Income Plan - Short Term Plan:-
Investment Objective: - The primary objective of Scheme is
to generate regular returns through investment primarily in
Debt and Money Market Instruments. The secondary objective
of the Scheme is to generate long-term capital appreciation by
investing a portion of the Schemes assets in equity and equity
related instruments. However, there can be No assurance that
the investment objective of the Scheme will be achieved.
Investment Options: Quarterly Dividend Option, Monthly
Dividend Option, and Growth Plan. The Dividend Plan offers
Dividend Payout and Reinvestment Facility
Nature of Scheme: - An open-ended income scheme. Monthly
income is not assured and is subject to availability of
distributable surplus
Inception Date:- December 26, 2003
4. HDFC MF Monthly Income Plan - Long Term Plan:- Investment Objective: - The primary objective of Scheme is
to generate regular returns through investment primarily in
Debt and Money Market Instruments. The secondary objective
of the Scheme is to generate long-term capital appreciation by
investing a portion of the Schemes assets in equity and equity
related instruments. However, there can be no assurance that
the investment objective of the Scheme will be achieved
27
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
28/114
Investment Options: Growth Plan, Quarterly Dividend
Option, Monthly Dividend Option. The Dividend Plan offers
Dividend Payout and Reinvestment Facility. Nature of Scheme: - An open-ended income scheme. Monthly
income is not assured and is subject to availability of
distributable surplus
Inception Date: - December 26, 2003
5. HDFC Floating Rate Income Fund Long Term Plan:-
Investment Objective: - The primary objective of the Scheme
is to generate regular income through investment in a portfolio
comprising substantially of floating rate debt / money market
instruments, fixed rate debt / money market instruments swapped
for floating rate returns, and fixed rate debt securities and money
market instruments.
Investment Options: Dividend Plan, Growth Plan. The
Dividend Plan offers Reinvestment Facility only
Nature of Scheme: - An open-ended income scheme.
28
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
29/114
Inception Date: - January 16, 2003
FUTURE
29
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
30/114
SCENARIO
The asset base will continue to grow at an annual rate of about 35 to 40%
over the next five year as investors shift their assets from banks and other
traditional avenues. Some of the older public and private sector players will
either close shop or be taken over.
Out of ten public players five will sell out, close down or merge with strongerplayer in three to four years. In the private sector this trend has already started
with two mergers and one take over. Here too some of them will down their
shutters in the near future to come.
But this does not mean that there is no room for other players. The
market will witness a flurry of new players entering the areas. There will be a
large no. of offers from various asset management companies in the time to
come, some big names like Principle, SBI, Fidelity, old mutual etc are looking
30
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
31/114
at Indian market seriously. One important reason for it is that most major
players have presence here and hence these big names would hardly like to get
left behind.
The mutual fund industry is awaiting the introduction of derivatives in India as
this would enable it to hedge its risk and this in turn would be reflected in its
Net Asset Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes
to trade in derivatives. Importantly, many market players have called on the
Regular to initiate the process immediately, so that the mutual funds can
implement the changes that are required to trade in Derivatives.
31
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
32/114
INDUSTRYDETAILS
Introduction
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in
different types of securities depending upon the objective of the scheme. These couldrange from shares to debentures to money market instruments. The income earned
32
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
33/114
through these investments and the capital appreciations realized by the scheme are
shared by its unit holders in proportion to the number of units owned by them. Thus a
Mutual Fund is the most suitable investment for the common man as it offers anopportunity to invest in a diversified, professionally managed portfolio at a relatively
low cost.
Anybody with an investible surplus of as little as a few thousand rupees can invest in
Mutual Funds. Each Mutual Fund scheme has a defined investment objective and
strategy.
A Mutual Fund is the ideal investment vehicle for todays complex and modern
financial scenario. Markets for equity shares, bonds and other fixed income
instruments, real estate, derivatives and other assets have become mature and
information driven. Price changes in these assets are driven by global events
occurring in faraway places. A typical individual is unlikely to have the knowledge,
skills, inclination and time to keep track of events, understand their implications and
act speedily. An individual also finds it difficult to keep track of ownership of his
assets, investments, brokerage dues and bank transactions etc.
A Mutual Fund is the answer to all these situations. It appoints professionally
qualified and experienced staff that manages each of these functions on a full time
basis. The large pool of money collected in the fund allows it to hire such staff at a
very low cost to each investor.
33
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
34/114
In effect, the Mutual Fund vehicle exploits economies of scale in all three areas -
research, investments and transaction processing. While the concept of individuals
coming together to invest money collectively is not new, the mutual fund in present
form is a 20th century phenomenon. In fact, mutual funds gained popularity only after
the Second World War. Globally, there are thousands of firms offering tens of
thousands of mutual funds with different investment objectives. Today, Mutual Funds
collectively manage almost as much as or more money as compared to banks.
History of Mutual Fund Industry
34
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
35/114
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India. The
history of mutual funds in India can be broadly divided into four distinct phases
First phase 1964-87(Monopoly of UTI)
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and
the Industrial Development Bank of India (IDBI) took over the regulatory andadministrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under
management.
Second Phase 1987-93(Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), and Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had
set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47,
004 crores.
Third Phase 1993-2003
(Entry of Private Sector Funds)
35
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
36/114
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 1993was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with total
assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets
under management was way ahead of other mutual funds.
Forth Phase Since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29, 835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does
not come under the purview of the Mutual Fund Regulations.
36
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
37/114
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth. As at the end of October 31, 2003, there
were 31 funds, which manage assets of Rs.126726 crores under 386 schemes.
37
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
38/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
39/114
Customers Profile of mutual fund industry:-
(Fig no 4.Type of Customer)
1. While you recommend a financial plan, you also need to understand the
needs and financial objectives of your customer along with his risk tolerance
and his expectations from the investments.
2. Honest and straightforward advice is appreciated. Help your customers make
the right choice
3. Advise your customers to start investing early and regularly to help them
optimize the benefits of the compounding rupee.
4. Help your investors with the procedures and paper work involved in making
an investment.
Treat every customer exclusively. A satisfied customer can give you increased
business through resale and referrals of other prospective customers
39
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
40/114
Positioning Strategy of mutual fund industry:-
Positioning starts with a product. But positioning is not what you do to a product.
Positioning is what you do to the mind of the prospect. That is, you position the
product in the mind of prospect. A companys differentiating and positioning strategy
must change as the product, market, and competitors change over time. . There
should be no under positioning, over positioning, confused positioning or
doubtful positioning.
Channel of Distribution:-
In Every asset Management Companys distribution channel played very
important roles.
Here assets management companies have distributors like
Consultants
Agents
Distributors
Advisers
Broker
Their role is very important for Assets Management Companys Office.
40
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
41/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
42/114
NET ASSET VALUE:-
The Net Asset Value or NAV is a term used to describe the value of an entity's assetsless the value of its liabilities. The term is commonly used in relation to collectiveinvestment schemes. It may also be used as a synonym for thebook value of a firm.
NAV covers the company's current asset and liability position. Investors mightexpect the company to have large growth prospects, in which case they would be
prepared to pay more for the company than the NAV suggests.
The NAV is usually below the market price because the current values of the fundsassets are higher than the historical financial statements used in the NAV calculation.
CALCULATING NET ASSET VALUE
Unit capital is the investors subscriptions. In MF it is not treated as a liability.
Investments made on behalf of the investors are assets side of the balance sheet. There
are liabilities of short-term nature.
FUNDS NET ASSET = ASSET LIABILITIES
NAV = Net AssetsIssued Units
I.e.NAV= (market value of investments + other accrued income + other assets accrued
expenses other payables other liabilities)/ (no. Of units outstanding as at the NAV
date)
42
http://en.wiktionary.org/wiki/less#Prepositionhttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Book_valuehttp://en.wikipedia.org/wiki/Financial_statementshttp://en.wiktionary.org/wiki/less#Prepositionhttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Book_valuehttp://en.wikipedia.org/wiki/Financial_statements -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
43/114
THE FACTOR AFFECTING THE NAV ARE AS FOLLOWING:
1. Capital gains or losses on the sale or purchase of investment
Securities.
2. Dividend and income earned on the assets
3. Capital appreciation in the underlying value of the stocks holds in the portfolio
4. Other assets and liabilities
5. Number of units sold or purchased
43
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
44/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
45/114
The truth is, as investors we should always pay attention to our mutual funds
and continue to monitor them.
MUTUAL FUND
45
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
46/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
47/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
48/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
49/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
50/114
You will always have access to up-to-date information on the value of your
investment in addition to the complete portfolio of investments, the proportion
allocated to different assets and the fund managers investment strategy.
FLEXIBILITY
Through features such as regular investment plans, regular withdrawal plans
and dividend investment plans, you can systematically invest or withdraw
funds according to your needs and convenience.
SEBI REGULATED
All mutual funds are registered with SEBI and function within the provisions
and regulations that protect the interests of investors.
While most investment options provide most of these features, only
Mutual Funds provide all of these options.
50
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
51/114
Limitations
NO CONTROL OVER COST
Any investor in a mutual fund has no control over the overall cost of investing.
He pays investment management fees as long as he remains with fund, albeit in
return for the professional management and research. Fees are payable even in
declining stage. A mutual fund investor also pays fund distribution costs, which
he would not incur in direct investing. However, this shortcoming only means
that there is a cost to obtain the benefits of mutual fund services.
NO TAILOR-MADE PORTFOLIOS
Investors who invest on there own can build their own portfolios of shares and
bonds and other securities. Investing through funds means he delegates this
decision to the fund managers. The very high-net-worth individuals or large
corporate investors may find this to be a constraint in achieving theirobjectives. However, most mutual fund managers help investors overcome this
constraint by offering families of funds- a large number of different schemes
within their own management company. An investor can choose form different
investment plans and construct a portfolio of his own.
MANAGING A PORTFOLIO OF FUNDS
51
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
52/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
53/114
Why Investor Needs Mutual Fund
Mutual funds offer benefits, which are too significant to miss out. Any investment has
to be judged on the yardstick of return, liquidity and safety. Convenience and tax
efficiency are the other benchmarks relevant in mutual fund investment. In the
wonderful game of financial safety and returns are the tows opposite goals and
investors cannot be nearer to both at the same time. The crux of mutual fund investing
is averaging the risk.
Many investors possibly dont know that considering returns alone, many mutual
funds have outperformed a host of other investment products. Mutual funds have
historically delivered yields averaging between 9% to 25% over a medium to long
time frame. The duration is important because like wise, mutual funds return taste
bitter with the passage of time. Investors should be prepared to lock in their
investments preferably for 3 years in an income fund and 5 years in an equity funds.
Liquid funds of course, generate returns even in a short term.
53
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
54/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
55/114
Risk Return Reward in Mutual Fund
Liquid Fund
Short Term
Fund
Income Fund
MIP
Balance Fund
Equity Fund
(Fig no 6: - Risk Return in Mutual Fund)
This graph shows risk and return impact on various mutual funds. There is a direct
relationship between risks and return, i.e. schemes with higher risk also have potential
to provide higher returns.
55
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
56/114
TYPES OF
MUTUAL FUNDS
56
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
57/114
Types of Mutual Fund
There are a wide variety of Mutual Fund schemes that cater to your needs, whatever
your age, financial position, risk tolerance and return expectation. Whether as the
foundation of your investment program or as a supplement, Mutual Fund schemes can
help you meet your financial goals. The different types of Mutual Funds are as
follows:
Diversified Equity Mutual Fund Scheme
A mutual fund scheme that achieves the benefits of diversification by investing in
the stocks of companies across a large number of sectors. As a result, it minimizes
the risk of exposure to a single company or sector.
Sectoral Equity Mutual Fund Scheme
A mutual fund scheme, which focuses on investments in the equity of companies
across a limited number of sectors usually one to three.
Index Funds
These funds invest in the stocks of companies, which comprise major indices such
as the BSE Sensex or the S&P CNX Nifty in the same weight age as the
respective indices.
Tax Saving Equity Schemes
Schemes investing predominantly in equity which offer tax rebates to investors
under specific provisions of the Income Tax Act, 1961 as the Government offers
tax incentives for investment in specified avenues. E.g. Equity Linked Savings
Schemes (ELSS). Currently rebate u/s 88 can be availed unto a maximum
investment of Rs 10,000. A Lock-in of 3 years is mandatory.
57
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
58/114
Monthly Income Plan Scheme
A mutual fund scheme which aims at providing regular income (not necessarily
monthly, don't get misled by the name) to the unit holder, usually by way of
dividend, with investments predominantly in debt securities (up to 95%) of
corporate and the government, to ensure regularity of returns, and having a
smaller component of equity investments (5% to 15%) to ensure higher return.
Income schemes
Debt oriented schemes investing in fixed income securities such as bonds,
corporate debentures, Government securities and money market instruments.
Floating-Rate Debt Fund
A fund comprising of bonds for which the interest rate is adjusted periodically
according to a predator-mined formula, usually linked to an index.
Gilt Funds
These funds invest exclusively in government securities.
Balanced Funds
The aim of balanced funds is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion
indicated in their offer documents. They generally invest 40-60% in equity and
debt instruments.
58
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
59/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
60/114
TrusteesTrust is created through the document called Trust deed that is executed by the fund
sponsor and registered with SEBI. Board of trustees- a body of individuals or a trust
company-a corporate body may manage the trust cum Mutual Fund. These are
protector of unit holders interests.2/3 of the trustees will be individuals and will not be
associated with the sponsors.
Following are the rights of trustees:
Approve each of the schemes floated by the assets Management Company.
Right to request any necessary information from assets Management
Company.
Right to take corrective action if they believe that of funds business.
Right to dismiss the assets Management Company.
Ensure that any shortfall in net worth of the assets Management Company
is made up.
Following are the obligations of trustees:
Enter in to an investment management agreement with the assets
Management Company.
Ensure that the funds transactions are in accordance with the trust
deed.
Furnish to SEBI on a half yearly basis, a report on the funds activities.
60
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
61/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
62/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
63/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
64/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
65/114
3. Joint Ventures - Predominantly Indian
a. Birla Sun Life Asset Management Pvt. Co. Ltd.
b. Credit Capital Asset Management Co. Ltd.
c. DSP Merrill Lynch Fund Managers Limited
d. First India Asset Management Private Ltd.
4. Joint Ventures Predominantly Foreign
a. Alliance Capital Asset Management (India) Pvt. Ltd.
b. Deutsche Asset Management (India) Pvt. Ltd.
c. Dundee Investment Management & Research (Pvt.) Ltd.
d. HSBC Asset Management (India) Private Ltd.
e. ING Investment Management (India) Pvt. Ltd.
f. Morgan Stanley Investment Management Pvt. Ltd.
g. Prudential ICICI Management Co. Ltd.
h. Sun F & C Asset Management (I) Pvt. Ltd
I. Templeton Asset Management (India) Pvt. Ltd.
65
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
66/114
Regulatory
Aspects
66
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
67/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
68/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
69/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
70/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
71/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
72/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
73/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
74/114
RESEARCH
METHODOLODY
74
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
75/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
76/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
77/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
78/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
79/114
The following table shows area wise distribution of sample size.
AREA SAMPLE
UDHNA 17
MORABHAGAL 3
ADAJAN 15
RANDER ROAD 17
RALWAY STATIONROAD 5
PARLE POINT 5
GHODDOD ROAD 8
PIPLOD 2MAJURAGATE 2
RING ROAD 4
BHAGAL 4
KATARGAM 4
VARACHA 2
CITY LIGHT ROAD 6
NANPURA 2
PANDESARA 1
VED ROAD 1
PAL 1
BHESTAN 1TOTAL 100
79
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
80/114
Data Collection Method
This step involves making a very specific plan about how you will conduct
your research and collect your data.
1) Surveys & Questionnaires
Survey The means by which quantitative research is conducted.
Questionnaire A prepared set of questions designed to generate data
necessary for accomplishing the objectives of the research project.
I used survey method for data collection. Information was collected by
personal interviews through questionnaire.
Following types of measurement scales were used in the questionnaire.
Simple category scale: - (Q-2, Q-4, Q-8, Q-9)
Multiple choice single response scales: - (Q-6)
Multiple choice multiple response scale:-(Q-1, Q-3, Q-5, Q-7)
80
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
81/114
DATA ANALYSIS
AND
81
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
82/114
FINDINGS
Q-1 which investment avenues are you aware of?
INVESTMENT AVANUES FREQUENCY PERCENTAGE
EQUITY/MUTUAL FUND 100 34.36%
POST OFFICE 94 32.30%
F.D. 86 29.55%
OTHERS 11 3.79%
82
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
83/114
100
94
86
11
EQUITY/M.F.
POST OFFICE
F.D.
OTHERS
(Fig no 9: - Define investments avenues)
Interpretation: -
From the above charts we can interpret that awareness of equity/mutual fund, postoffice (NSC, KVP, and PPF), fixed deposits is more compare to others like GOVTISSUED Instrument, GOVT Backed Instrument, Real Estate, gold etc. so HDFCassets Management Company needs to focus more on those investors who are moreinvest in KVP, NSC, PPF and fixed deposits.
Q-2 do you invests in mutual fund?
YES NO
97 3
83
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
84/114
3
97
0
20
40
60
80
100
120
YES NO
PREFERNCE
NOO
FPEOPLE
Series1
(Fig no 10: - Define investments in mutual fund)
From the above chart it is getting clear that now a days people are like to invest theirmoney in mutual fund of different assets management company, out of 100 people
sampled 97 are investing in the mutual fund.
Q-3 If yes, in which assets class do you want to invest inMutual Fund?
84
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
85/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
86/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
87/114
Management company limited?
SCHEMES OF HDFCNO OFINVESTOERS
EQUITY FUND 43
CAPITAL BUILDER FUND 2
PRUDENCE FUND 17
TAX SAVER FUND 35
CORE AND SATELITE FUND 3
TOP 200 FUND 16
BALANCED FUND 1
GROWTH FUND 16
OTHERS FUND 5
NO OF INVESTOERS
43
2
1735
3
16
116 5
EQUITY FUND CAPITAL BUILDER FUND
PRUDENCE FUND TAX SAVER FUND
CORE AND SATELITE FUND TOP 200 FUND
BALANCED FUND GROWTH FUND
OTHERS FUND
(Fig no 13: - Define scheme in which investors invest in HDFC assets
Management Company)
From the above chart we can see that in HDFC assets Management CompanysEQUITY FUND maximum number (43) of people are invest. In TAX SAVER FUND35 number of people invests. In both TOP 200 FUND and GROWTH FUND 16numbers of people are invests but in BALANCED FUND, CAPITAL BUILDERFUND, CORE AND SATELITE FUND only 1,2 and 3 people are invest so investorsare not invested in these 3 schemes. In PRUDENCE FUND 17 numbers of people areinvested.
87
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
88/114
Q-6 By which medium you invest in HDFC assetsManagement company limited?
MEDIUM OF INVESTMENT NO OF PEOPLE
DISTRIBUTOR 8
BANK 48
ONLINE 0
8
48
0
0
510
15
20
25
30
35
40
45
50
DISTRIBUTOR ONLINE
MEDIUMS
NO OF PEOPLE
NO OF PEOPLE
(Fig no 14: - Define mediums choose by investors for invest in HDFCassets management company)
From the above chart its getting cleared that most of the peoples (48) are invest bybank and only 8 peoples are invest by distributors. Nobody invests through online. Sohere HDFC assets Management Company has to provide facility by which investorsinvest their money with out any middle man in mutual fund schemes through online.
Notes: - here out of 100 responds, 44 responds are not invest in HDFC assetsManagement Company. These responds are not considered in these questions.
88
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
89/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
90/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
91/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
92/114
FINDINGS
92
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
93/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
94/114
HDFC assets Management Company provides EXCELLENT CUSTOMER
SERVICE.
Out of the total respondents almost 48 responds are investing through bank,
only 8 responds investing their money by distributor and nobody invested by
online.
The 58% of the respondent were aware about the ongoing NFO of HDFC
assets management company and 42% were not aware about the ongoing NFO
of HDFC assets management company.
In HDFC assets Management Companys EQUITY FUND maximum number
(43) of people are invested and In TAX SAVER FUND 35 number of people
are invests.
94
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
95/114
LIMITATIONS
95
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
96/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
97/114
CONCLUSIONS
97
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
98/114
Conclusions
Half of the respondents are investing in different schemes of mutual fund
companies.
The investors prefer investing more in banks and post office, which shows that
investors want security, and assured returns.
Others than Banks and post office the next preference of investors who go for
risky preposition in shares and Mutual Funds. That is basically due to
misconception that Mutual Fund Companies usually invest in equity market,
which shakes trust of people in Mutual Fund.
Majority of investors invested in open-ended schemes.
The awareness level about HDFC assets Management Company is moderate
but still the awareness should be created because 44% peoples still not invest
in HDFC assets Management Company.
98
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
99/114
As the investor prefers safe investment and want consistent return, they invest
in debt schemes (22.69%).
The investors prefer HDFC assets Management Company more because of the
tax benefit and consistent return.
Mutual funds are also preferred because of the cost effectiveness and higher
income by investing in equity schemes.
The banks mostly make the investments through the agents followed.
Professional and Business class, which is considered to be the most
knowledgeable class of the region prefers Mutual Funds less compare to
service class.
The time frame of the investment by majority of the investors is open-ended
schemes in which their money is not locked for 3 to 5 years.
99
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
100/114
100
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
101/114
RECOMMENDATION
S
Recommendations
The company should try to make aware people about their different schemes
through the road show; seminars and presentation that it is not just equity
based schemes but also debt and liquid or balanced schemes also promoted by
company. Company has to put hoardings, banners, pamphlets in that area
where peoples can watch easily.
101
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
102/114
The customers should be made aware that if the time frame of the investment
is more than 3 years Equity option is the best tool for investing in mutual fund
by this investors getting good and high returns for their investments.
The company should be conducting special training and motivation
Programme for their distributors and also for investors so that they are being
motivated to work, their quality of performance and contribution in sales is
maintained.
Company has to provide application forms and other promotional materials totheir distributors time to time and company has to maintain better relationship
with their distributors by these they can give good contribution in investments.
None of responds invest their money in different schemes of company
By Online, so company has opportunity to launch online services for their
distributors and retail investors.
Companys core and satellite fund, balanced fund, capital builder fund are
preferred by very few investors because this schemes not perform well so
company has to think about their companies in which they invest investors
money so they have to change portfolio of investments.
Most of the people still preferred to invest in post office schemes and fixed
deposits so company has to focus on these investors.
102
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
103/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
104/114
ANNEXURE
Questionnaire
104
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
105/114
NAME: -
ADDRESS: -
CONTACT NO: (O) (R) (M)
1) Which investment avenues are you aware of?Equity /Mutual fund
Post Office (NSC, KVP, PPF)
Fixed Deposits
Others
If others please specify
2) Do you invest in mutual funds?Yes No
3) If yes, in which assets class do you want to invest in mutual funds?
Equity Debt Liquid
4) Do you invest in HDFC mutual fund?Yes No
5) If yes, in which scheme would you invest in HDFC MUTUAL FUND?
Equity
Capital builder
Prudence fund
Tax saver
Core & satellite
Top 200 fund
105
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
106/114
Balanced fund
Growth
Others
6) By which medium do you invest in HDFC mutual fund scheme?Distributor Bank Online
7) Why do you prefer investing in HDFC MF?
Better fund house
Excellent customer service provider
Consistent return
Other
If other please specify
8) Which type of product/scheme would you prefer while investing in EquityScheme of HDFC mutual fund?
Open-ended Close ended
9) Do you know about on going new fund offers of HDFC AMC?
Yes No
Remarks if any other please specifies: -
Thank you for your time.
106
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
107/114
Glossary
Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its
liabilities. The per unit NAV is the net asset value of the scheme divided by the
number of units outstanding on the Valuation Date.
Sale Price
The price you pay when you invest in a scheme. Also called Offer Price. It
May include a sales load.
Repurchase Price
The price at which a close-ended scheme repurchases its units and it may
Include a back-end load. This is also called Bid Price.
Redemption Price
The price at which open-ended schemes repurchase their units and close-
Ended schemes redeem their units on maturity. These prices are NAV
Related.
Repurchase or Back-end Load
A charge collected by a scheme when it buys backs the units from the unit
Holders.
107
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
108/114
Expense Ratio:
The Expenses of a scheme include management fees and all the fees associated with
the scheme's daily operations. Expense Ratio refers to the annual percentage of fund's
assets that is paid out in expenses and can affect the performance of the scheme.
Exit Load:
It is the load charged by the fund when one redeems the units from the fund. Itreduces the price of the units to less than the NAV and is expressed as a percentage of
NAV.
Face Value:
The original issue price of one unit of a scheme, generally Rs 10.
Lock-in period:
The cooling period after investment in fresh units during which the investorCannot redeem the units.
No Load:
It refers to the fund that does not charge any load for buying or selling its units, i.e.
the investor can transact at the NAV.
108
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
109/114
List of table
Sr. No. Name of Table Page No.
1 Offices of HDFC assets management company limited 17
2 Other various assets management companies details 643 Area wise distribution of sample size. 79
4 Define investments avenues 82
5 Define investments in mutual fund 83
6 Define schemes preferred by investors 84
7Define investment in HDFC assets managementcompany
85
8Define scheme in which investors invest in HDFCassets management company
86
9Define medium choose by investors for invest in HDFCassets management company 87
10 Define PREFENCE CRITERIA of investors 88
11Define type of product /schemes investors prefer forinvestments.
89
12Define awareness level about on going NFO of HDFCassets management company.
90
109
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
110/114
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
111/114
Bibliography
Books
Cooper and schinder Research Methodology New Delhi TataMcGraw-Hill Ltd 2001
Fact sheet of HDFC assets Management Company limited.
www.hdfcfund.com
www.amfiindia.com
www.valuereserchonline.com
www.moneycontrol.com
Websites
111
http://www.valuereserchonline.com/http://www.valuereserchonline.com/ -
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
112/114
CERTIFICATE
This is to certify that Mr. Badami Kalpesh D. has satisfactorily completed the project
work entitled, Mutual fund Awareness in Retail Investors Of HDFC Assets
management company in SuratBased on the declaration made by the candidate
and my association as a guide for carrying out this work, I recommended this project
report for evaluation as a part of the MBA programmer of Veer Narmad South
Gujarat University.
Place: _______________
Date: (Dr. R. S. Shah)
This project is forwarded for evaluation to the Veer Narmad South Gujarat
University.
Place:
Date: ____________________
Director of GRIMS
(Dr. R. S. Shah)
112
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
113/114
113
-
7/29/2019 MARKETING STRATEGY OF -Hdfc Mutual Fund
114/114